The East Berlin was the capital of East Germany and the majority of its time was under the communism regime. However, the problem was not so straight forward as distinguishing between the two categories mentioned above. To better understand here are the history and the economic structure of East Berlin.

1. The Division of Berlin

After World War II, Germany was divided into two separate states: West German (Federal Republic of Germany) and East German (German Democratic Republic). Berlin, as the capital, was also divided into two sectors: Though West Berlin was under the control of Western Allies and East Berlin was under the Soviets.

2. Life in East Berlin When Under Communism

East Berlin was under a socialist system like rest of East Germany and was controlled by a government affiliated to the Soviet Union. The Socialist Unity Party (SED) had the political power and freedom held the Berlin Wall in 1961 so that its inhabitants could not flee to the western-capitalist world.

2.1 Economic System

Economy of East Berlin had centrally planned economy, a command economy in which the government had the major say and controlled all major resources. Most property was collectivised and all industry was state-owned. There are well laid down production targets, price control by the government, thereby scarce options for consumers and poor quality products.

Also the latter era saw East Berlin put its emphasis on heavy industry and agriculture especially through the collectivization of farms subduing consumer product and services industry. This led to the slow pace in technological and infrastructural developments for instance living standards were lower than those in West Berlin.

2.2 Government and Society

The governing regime in East Berlin was authoritarian; the SED had a command of all spheres of life. All political dissent was quashed, and the government spies were all over. The government extended the policy of communism and concentrating on the equality of people and forging the identity of one nation.

School and television were primary vehicles for relaying messages, transmitting and promoting the ideas of communism to encourage obedience to the government. State owned media played the role of curtailing the dissenting voices and to a wedge the party line.

3. Transformations after the falling of the Berlin Wall

The demolition of the Berlin Wall in 1989 was the signal for change in East Germany and its major city. Since the democratisation process and the disappearance of the communism in the early 1990, East Berlin is in the process of changing to a market economy oriented system of the government.

3.1 — Reunification with West Berlin

East and West Germany merged when the Berlin Wall came down in 1989 and the two officially reunified in 1990. East Berlin turned into one of districts of unified Berlin and the Federal Republic of Germany. The process of its integration into the capitalist system took place, therefore the city experienced changes in economic status, society structure and culture.

3.2 Market-oriented Economy

Est Target Due to political liberalization and transitioning from communism to capitalist economy East Berlin experienced rapid social change in economic system. Competition and private ownership of businesses was permitted to be returned, people had an chances to own the enterprises to participate in the competitive market. Licensing in turn endowed it with increased competition, improved and diversified consumer goods and services.

Money poured into the east Berlin from overseas, the economy and city constructions improved. It drew commerce, visitors and artistic sectors making the city a cultural hub.

4. Conclusion

Therefore, East Berlin was under communism for several decades, with the central feature of having planned economy and most important the state control. But after the collapse of the Berlin Wall the city entered a new stage of its development, thus joining the system of a market-oriented capitalist economy. The history of East Berlin also teaches valuable lessons about the political beliefs and their activities within all societies.

Anyone who wants to read further can please read more on the history of East Germany, the Berlin Wall and the reunification. A similar view edges from such related historical events that would help understand the continually evolving processes leading to a modern Germany on the whole.